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Business Tips

What is Net Promoter Score?

October 26, 2021
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Any business or service provider can flourish if it provides a great customer experience. Customer Experience experts use different metrics to ensure customer satisfaction. Net Promoter Score (NPS) is a significant standard used to measure customer experiences for future prediction of business growth.

Companies that have a highly-responsive customer care services succeed in achieving their objectives quickly. Similarly, it is essential to constantly measure and track customer experiences to ensure growth in the right direction. This article focuses on the significance of calculating NPS and how an organization can gain an advantage from it.

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What is the net promoter score (NPS)?

Net Promoter Score Definition

NPS stands for net promoter score. It is a measure to calculate the customers’ loyalty to a specific brand or organization. Customer Experience programs use the NPS score to see whether customers are happy with the services provided.

This metric system has revolutionized the trading world since calculating NPS allows a company to assess its position in the eyes of its consumer family. Businesses and organizations all over the world are using this method to manage customer experiences and make amendments in their functionality to score better. 

Why is NPS important?

While the NPS score helps an organization understand where they stand in the eyes of their customers. It also helps them identify the customers by rank in terms of loyalty, including promoters, passives, and detractors.

NPS Score represents an organization’s health, and it can attract new consumers and convert new customers into loyal ones. If customers are reliable, they will genuinely promote the business in various ways. Loyal customers are assets as they direct new consumers by referring and can increase the amount customers.

Why use a net promoter score?

If you are new to the concept of net promoter score, you may be wondering, “why does an organization use NPS score?” It is a significant part of Customer Service Quality Assurance. There are multiple other reasons; however, these are some of the important ones:

Customer insight

Brand or organization sometimes gets stuck in its growth process, and they may not be able to find out the gaps themselves. In such cases, they can use customer insight. Based on our experience at Simply Contact, experts use a simple survey system to measure customer satisfaction.

NPS helps in identifying customers who are ready to support the business. We help companies provide commendable customer care service and collect customer reviews for NPS scores, which determines the business’s success. Based on this score, they’d plan the future objectives.

Find potential for improvement with NPS

While the net promoter score is used to calculate the customer satisfaction for the entire organization, an organization can also use it against each employee. When this happens, a company can quickly identify an employee’s gaps and find potential for improvement.

An organization uses the NPS survey and studies it for improvement. Expert service providers can help fill gaps, channel customer services in the right direction, and increase generated revenue through different strategies. Often in our projects, a trained statistician administers the NPS score and provides the organization with complete intuition on the feedback.

Customer feedback.

Honest and understandable feedback

The net promoter system is easy to use and provides understandable feedback from the customers’ side. With such honest and understandable feedback, the organization gains the chance to communicate with customers and change negative impressions, if any.

Companies connect with customers through their products and services. At the same time, consumers communicate by providing feedback. Using the NPS score is a way to get honest feedback from actual users.

The NPS calculation

NPS calculation is pretty simple; the survey is based on one single question: “On a scale of 0-10, how likely is it that you would recommend us to your friends, colleagues, or business associates?”

When customers choose one number, they get ranked in three different categories:

Promoters

If the consumer chooses 9 or 10, it means that he is a promoter. Promoters would keep buying products from the same brand. Such customers fuel the organization’s growth and recommend the products or services to close ones.

Passives

Passive customers rate the organization 7 or 8; these customers are usually happy with the organization but aren’t willing to promote and recommend the brand to others. But if they receive certain promotional offers, passives can be convinced.

Detractors

Usually, when a customer is unhappy, he would provide negative feedback. If a customer ranks the service provider between 0 to 6, he is a detractor. In addition to giving negative feedback, detractors won’t hesitate to badmouth the organization and sabotage its growth.

Once all consumers have ranked the company, Simply Contact experts provide an average NPS score to the company and help them improve customer satisfaction to increase the number of loyal customers.

Useful tips to improve response speed in NPS polling

It is a common fact that customers are reluctant towards filling surveys, even if they have had a great experience. On the other hand, customers will most definitely report a bad experience. It becomes challenging for newbies to improve the response speed in NPS polling. Worry no more, here are some tips from Simply Contact experts to enhance the response speed:

Be clear about how long the survey will take

The best way to improve the response speed in NPS polling is to deliver a clear message. If you are using the one-question survey, you should inform the customers that it would simply take a few seconds. It can be the perfect way to lure them into submitting their response.

However, if you have a long survey, you should still inform the consumers about the amount of time and the number of questions to which the consumers have to respond.

Multiple language options

Research proves that people are more likely to fill in a survey that is in their native language. Hence, if you want more responses, you should consider providing the survey in multiple language options. A few of your consumers may not understand or aren’t fluent in the language you selected.

Create responsive polls

Call centers and customer care representatives should realize that every consumer uses a different gadget to access the survey. Your NPS poll should be highly responsive so that it adapts to various types of devices.

If an unprofessional person formats the survey poorly, it won’t display it correctly on different screens. Low-quality formatting can result in the elimination of animations and images, etc.

Send reminders to your respondents

Different companies use different ways to reach out to their consumer family, including emails, cellphone texts, etc. It is necessary to send attractive and eye-catching subject lines to keep consumers hooked. When customer care representatives receive less amount of feedback, they need to send out reminders.

A well-designed reminder should urge the customers to fill out the survey. Many companies offer specific discounts for consumers once they fill the form.

Summary

NPS score indicates the level of customer satisfaction for a specific organization. Net promoter score is an average rating of a company in the eyes of consumers. Businesses are significantly dependant on consumers, and hence they need to ensure customer satisfaction.

That is the primary reason why companies strive to provide high-quality customer service. While providing high-quality customer service sounds easy, it is the job of experts.

Experts collect feedback for quality assurance, they can identify and work on meeting the existing gaps in the system. If you are looking for a quality-driven contact center to support your business, contact us.

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